In a lawsuit brought by Russian billionaire Dmitry Rybolovlev, Sotheby’s has been acquitted of liability over allegations that it participated in an art overcharging scheme. The trial, which lasted almost four weeks, involved a dispute over four masterpieces, including works by Gustav Klimt, Rene Magritte, and Modigliani. The case not only focused on the specific artworks but also provided insights into the usually secretive world of high-value private art sales. The verdict found Sotheby’s not liable on multiple counts of aiding and abetting fraud.
Rybolovlev accused Sotheby’s of being complicit in a scheme where Swiss art dealer Yves Bouvier overcharged him for artworks. The plaintiff argued that Sotheby’s should have known that Bouvier, who acted as an intermediary, was the true owner of the works and not just an agent. During the trial, Rybolovlev’s lawyers pointed to documents sent to Bouvier by Sotheby’s, emphasizing high valuations for certain works, including a painting by Leonardo da Vinci, “Salvator Mundi.”
Sotheby’s defended itself, asserting that it was simply performing its role as an auction house, selling art. The defense contended that Rybolovlev’s grievances should be directed at Bouvier, who was responsible for conducting due diligence. The auction house emphasized that it adhered to all legal requirements, financial obligations, and industry best practices during the transactions.
Marcus Asner, lead counsel for Sotheby’s, expressed satisfaction with the verdict, stating, “We were vindicated in the end. We knew that we acted at all times completely legally and ethically. We are delighted to put this chapter behind us.”
The trial shed light on the lack of transparency in the art market, raising concerns about the secrecy that makes proving complex aiding and abetting fraud cases challenging. While Rybolovlev’s goal was to expose this lack of transparency, the court ruled in favor of Sotheby’s, emphasizing that the auction house strictly adhered to legal requirements and industry practices during the transactions.
Sotheby’s released a statement after the trial, stating that the verdict “totally vindicates Sotheby’s of any alleged misconduct.” The auction house reiterated its commitment to legal requirements and industry standards throughout the transactions involving the contested artworks.
Rybolovlev, the owner of AS Monaco football club and a billionaire with a fortune exceeding $7 billion from the sale of his fertiliser company, was a constant presence during the trial. His lawyer, Daniel Kornstein, acknowledged that the lack of transparency in the art market made it challenging to prove the complex aiding and abetting fraud case. However, Rybolovlev’s grievances against Bouvier, who was not part of the New York lawsuit, were emphasized during the trial. The billionaire and Bouvier have faced legal clashes in other forums, with cases either dismissed or settled. Bouvier maintains he did nothing wrong.
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